Co-operatives and Micro, Small and Medium Enterprises Development Cabinet Secretary Wycliffe Oparanya has called on savings and credit cooperatives (SACCOS) to take decisive action against rogue officials implicated in fraud and financial mismanagement. He warned that allowing such individuals to move freely between institutions undermines trust and stability in the cooperative sector.
Speaking during a validation meeting of the Committee of Experts’ report on transforming the Sacco system at the Kenya School of Government in Mombasa, Oparanya emphasised that misconduct must be confronted from within. He noted that cooperative institutions should not tolerate officials who have been implicated in wrongdoing, stressing that reforms are essential to safeguard members’ funds.
Oparanya underscored the need for greater transparency, fair treatment of members, and a balanced approach between savers and borrowers. He reminded stakeholders that the report had already been presented to President William Ruto at State House, Nairobi, last month, marking a significant step in the ongoing reform agenda.
ALSO READ:
Closure of Iranian Port of Salalah threatens Kenya’s tea export
Oparanya urged the cooperative movement to remain true to its core purpose as savings and credit institutions. He called for deliberate steps to strengthen governance, enhance self-regulation, and protect members’ contributions. Failure to embrace reforms, he cautioned, could expose Saccos to stricter regulatory measures in the future.
Looking ahead, Oparanya encouraged Saccos to support practical reforms such as mergers, stronger governance structures, and the delegate model for large institutions to improve representation and decision-making. He challenged Sacco leaders to plan long-term, building institutions that remain stable, trusted, and relevant for years to come.
The Ministry, he assured, will continue providing policy guidance to support a stronger and more resilient cooperative movement.
Jack Ranguma, Chairperson of the Sacco Societies Regulatory Authority (SASRA) board, welcomed the recommendations, saying they align with SASRA’s strategic focus on protecting member funds, strengthening the sector, and deepening financial inclusion under the Government’s Bottom-Up Economic Transformation Agenda. He expressed confidence that full implementation of the reforms will enhance trust, stability, and resilience in the cooperative system.
ALSO READ:
Govt unveils Ksh 650 Million project to boost rice farming in Ahero
SASRA is working closely with the Kenya Deposit Insurance Corporation within the Joint Forum of Financial Sector Regulators on key proposals, including the establishment of a Deposit Guarantee Fund. This initiative is expected to provide additional protection for members’ savings.
By Masaki Enock
Get more stories from our website:Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook:Sacco Review Newspaperfor timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
